Netflix Share Price Jumps On Rise in International Subscriber Base

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    • October 12, 2024
    Netflix Share Price Jumps On Rise in International Subscriber Base
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    Netflix’s share price surged 2.5% in after-hours trading following an earnings report that highlighted a significant increase in international subscribers. However, domestic subscriber numbers fell short, indicating growing competition in the U.S. and Canada.

    The company added 423,000 new subscribers in the domestic market, below its own expectations of 600,000. In contrast, the international subscriber base grew by 8.3 million, far exceeding the estimate of 7 million new international subscribers.

    Netflix now has a total paying subscriber base of 167 million, with 106 million of those subscribers located outside the U.S. and Canada. The company’s revenue grew 31% year-on-year, slightly beating the estimated $5.45 billion by reaching $5.47 billion. Earnings per share came in at $1.30, although previous EPS data is unavailable due to tax adjustments.

    Netflix has quickly capitalized on the growth of its international subscriber base by introducing local currency payments in several countries, making it easier and faster for customers to pay their subscriptions.

    On the technical side, Netflix’s share price continues to trade within a rising channel visible on the weekly chart. After closing at $338.11, the share price jumped to $348.50 in after-hours trading. It is now approaching immediate resistance at $347.02, which aligns with the 23.6% Fibonacci retracement level from the swing low on February 8, 2016, to the swing high on June 18, 2018. This resistance must be overcome before the price can reach the upper channel border. Additional resistance lies at $383.50, where the highs from April 29 and July 8, 2019, are located.

    On the downside, if Netflix fails to break through the 23.6% Fibonacci retracement, it could pull back toward the $313.97 price level. This level represents the intersection of the lower channel border with the lows from August 13, 2018, and July 15, 2019, as well as the high from November 25, 2019. A break below this area could target $295.74, where the 38.2% Fibonacci retracement level is located.